The national government has enacted Law No. 27.819, with which Congress ratifies the Free Trade Agreement between Mercosur and the Republic of Singapore. This agreement marks the first formal participation of the regional bloc in Southeast Asia.
The treaty, which came into force following the publication of decree 1010/2026, was signed on December 7, 2023, in Rio de Janeiro, Brazil. This agreement establishes a free trade area for goods and services, aligning with the rules of the World Trade Organization (WTO), fostering fair competition, and supporting micro, small, and medium-sized enterprises.
The agreement provides for a tariff reduction on a staggered schedule, allowing for the total elimination of tariffs from the entry into force up to 15 years for specific sectors, preventing new tax increases on originating products. Additionally, measures to facilitate trade are introduced, such as the exemption of tariffs for low-value samples and the temporary admission of professional equipment, among others.
Regarding governance, strict guidelines for import and export licenses are established, with the obligation to notify in advance restrictions on critical food products. A new Subcommittee on Trade in Goods and Rules of Origin will oversee the proper implementation of regulations and handle necessary technical inquiries.
From the Foreign Ministry, the importance of the agreement beyond the exchange of goods was emphasized, highlighting the relevance of the relationship with Singapore, which manages nearly $100 billion in its investment fund. There is confidence that the agreement will attract investments in sectors such as minerals and energy, ensuring a stronger legal security framework than other existing agreements.
Secretary of International Economic Relations, Fernando Brun, pointed out the opportunity this agreement represents by referring to Singapore as a country with the highest GDP in the world, where currently only 4% of its investments are directed towards Latin America. The urgency of this agreement has been evidenced in the defense of trade openness made by Senator Francisco Paoltroni, while other legislators like Jorge Capitanich expressed the need to strengthen technical oversight through agencies like INTA and INTI.
Source: www.infobae.com
